Partners with

2016 NICE-BCG CX SURVEY

Survey Highlights

NICE and BCG sponsored a survey to identify the

key trends in Multi-Channel customer experience

US

698 UK

248 Australia

255

Netherlands

254 France

249

1,704 Surveys

Data collected

July 30 –

August 21, 2015

Required to be between

ages 18-65 and live in a major metropolitan area

NICE and/or BCG was NOT

identified as the research sponsor

Respondents recruited from online panels of users of 3 types of services

Financial

services Telecom

services Insurance

Analyzing the survey responses we identified

four trends

Customer Journeys

Are Here To Stay

Multi-Channel

Interaction Complexity Is Growing

Customer Experience

Can Be A Key

Differentiator

Personalization Is Key For Winning

Customers use 5.6 channels on average,

97% of customers are Multi-Channel users

Number of Channels Used (2016 survey)

Number of channels

3%

8%

15% 15% 15%

11%

7% 6%

4%

11%

5%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

0 1 2 3 4 5 6 7 8 9 10 11 12

% o

f re

sp

on

de

nts

Ave

rag

e 5

.6

98% Use more

than 1 channel

1/3 use 7 or more

channels

Physical Visit – ATM

Physical

Visit - in

Person

Live Rep via Phone

IVR Live chat on website

Self-

Service on

Website

Mobile app

Email Text Online forums

Social media

There are wide variations in channel usage

frequency Usage Frequency by Channel

(2016 survey)

Physical Digital Care center

Total

21%

37%

53%

36% 30%

24% 15%

36%

17% 15% 14%

27%

13%

18%

14%

9% 27%

10%

18%

9% 7% 6%

34%

6%

8%

7%

5%

22%

12%

9%

6% 5% 5%

2%

4%

3%

3%

2%

9%

9%

5%

5% 3% 3%

Daily

Weekly

Monthly

Less often thanmonthly

Never use / notoffered

84% 60% 82% 60% 46% 82% 46% 68% 37% 29% 28%

16% 38% 17% 36% 51% 17% 50% 32% 61% 64% 65%

Mobile is gaining momentum as preferred

channel…

Usage frequency – Mobile app (2011-2013-2016 surveys)

78%

57% 54%

8% 11% 15% 5%

10% 10%

5%

13% 12%

4%

9% 9%

Never use / not offered Less often than monthly Monthly Weekly Daily

22%

43% 46%

Total

2011 2013 2016

…while social media buzz is fading

Usage Frequency – Social media

(2011-2013-2016 surveys)

Reasons for NOT Using social media

(2016 survey)

80%

58% 65%

6% 12% 14% 3%

8% 6% 3%

7% 5%

4%

9% 3%

Never use / not offered Less often than monthlyMonthly WeeklyDaily

2011 2013 2016

16%

36% 29%

Takes too long to address issues

Limited functionality

(i.e., can only do a few tasks on

social media)

Not feasible for complex tasks

If I need help from a representative,

I have to call and start from scratch

No privacy

No click to call/click to chat

option available

Cannot reach a successful resolution

33%

32%

30%

27%

26%

26%

24%

Excessive wait times

Having to speak with multiple reps

and repeat the information every time

I prefer self-service channels

rather than dealing with a person

45%

38%

27%

Knowledge of customer journey drives

successful experience

Journey knowledge can improve

the bad IVR experience…

…and improve live rep experience through

first call resolution

Get me to a specialized rep

aware of my IVR journey

Inform me of remaining waiting time/allow a

callback option

Complete transaction fully through IVR

28%

18%

15%

Main motivator to complete transaction with IVR

(2016 survey)

Why people don’t use live rep via telephone

(2016 survey)

Most organizations provide poor journey

experience

Challenges experienced when switching contact methods Among those using 2+ methods

76% Experience Challenge

Switching Channels

24% Switch

Channels

Seamlessly

Challenges Examples

The information available to me is

inconsistent

Info, actions, account history don't

transfer between methods

Could cause more than one rep to work

on the same issue

Can slow down the resolution process

Significant amount of calls to CC are due

to unresolved issues in other channels…

Interaction flow if unable to complete task (2016 survey)

Email

15.1%

IVR

12.5%

Branch

11.5%

Website

6%

Mobile app

6.4%

Text

6.8%

Chat

9.2%

Voice

100%

Branch

11.2%

Email

8%

Chat

6.4%

Website

5.6%

Give Up

3.2% % in card represents % of

customers from total

When customers get to a live agent 40%

don’t achieve successful resolution

Interaction flow if unable to complete task (2016 survey)

Email

15.1%

IVR

12.5%

Branch

11.5%

Website

6%

Mobile app

6.4%

Text

6.8%

Chat

9.2%

Voice

100%

Branch

11.2%

Email

8%

Chat

6.4%

Website

5.6%

Give Up

3.2%

40% of respondents

continued to other

channels, which

result with only 60%

FCR

(First Call Resolution)

% in card represents %

of customers from total

We see correlation between successful

problem resolution and customer satisfaction

0%

10%

20%

30%

40%

50%

60%

70%

80%

10% 20% 30% 40% 50% 60% 70% 80%

Sa

tisfa

cti

on

(R

an

ke

d 1

st

or

2n

d)

Average % of Success

Bubble size

corresponds

to % using

channel

Self-service on

website

Live rep via

phone

Mobile

app

Live chat on website Text

messaging

Email Social media

Physical visit

– in person

IVR

Online

forums

Satisfaction vs. % of Time Successful Using Contact Method

(2016 survey)

0%

10%

20%

30%

40%

50%

60%

70%

80%

10% 20% 30% 40% 50% 60% 70% 80%

Service providers experienced a drop in

successful resolution rates across channels

Satisfaction vs. % of Time Successful Using Contact Method

(2013 and 2016 surveys)

Sa

tisfa

cti

on

(R

an

ke

d 1

st

or

2n

d)

Average % of Success

Live rep via

phone

Mobile

app

Live chat on website

Social media

Physical visit

– in person

IVR

2013

2016

The drop in success rates is consistent across countries and verticals,

but appears to be mostly driven by Gen X and Y males.

Bubble size

corresponds

to % using

channel

Strong ties between customer effort,

customer satisfaction and customer loyalty

Effect of customer effort on satisfaction, and effect of customer satisfaction on loyalty (2016 surveys)

16%

1%

22%

29%

6%

14%

22%

31% 22%

11%

62% 64%

Amount ofEffort Expended

Satisfaction Among"Very Low Effort"

Loyalty among"Extremely satisfied"

Very High Effort

5

Very Low Effort

2

3

4

Extremely

satisfied

Not at all

satisfied Somewhat satisfied

Very

satisfied

Increased

loyalty

No effect

Decreased

loyalty

The level of experience across channels is

inconsistent

Actual quality of experience – Experience map by channel (2016 survey)

Digital Physical Care center

40

50

60

Ex

pe

rie

nc

e Q

uali

ty In

de

x*

Voice

Branch

Email

Website

Chat

IVR

Text

Mobile app

ATM

Care center caries

the lowest point in

customer experience

* Experience quality index – a comparative measure of customers experiences, based on BAI (Brand Advocacy Index) methodology. Calculated as sum of % reporting perfect

experiences and % reporting good experiences, net of % reporting sub-standard experiences (weighted 1, 0.5 & 0.5 respectively)

Telecom providers create inferior

experience across geographies

Actual quality of experience index* – by industry and geography (2016 survey)

US UK Australia Netherlands France

Financial

Services 58 43 41 41 54

Telecom 35 34 33 31 41

Insurance 51 45 46 39 60

* Experience quality index – a comparative measure of customers experiences, based on BAI (Brand Advocacy Index) methodology. Calculated as sum of % reporting perfect

experiences and % reporting good experiences, net of % reporting sub-standard experiences (weighted 1, 0.5 & 0.5 respectively)

20%

10%

29%

21%

31%

36%

13%

23%

7%

10%

Extremely likely Very likely Somewhat likely Not very likely Not at all likely

2013

2016

Positive perception: 49%

Positive perception : 31%

Negative perception : 21%

Negative perception : 33%

Perceived Likelihood Service Provider Took

Action Based on Customer Feedback

Customers have become significantly more

skeptical about the effects of their feedback

Customers are selective about their

preferred channel per interaction reason

Preferred channel to research products or offerings – By vertical (2016 survey)

21% 14%

10%

35%

32% 33%

4%

4% 7%

4%

4% 5%

3%

5% 4%

3%

4% 8%

1%

3% 2%

14%

12%

14%

3% 11%

10%

12% 11% 7%

Financial Services Telcom Insurance

Other

IVR

Live rep

Text

Email

Social media

Mobile app

Live chat

Self service on website

Physical visit - in person

Individual customer journey information and

prompt action drives perfect experiences

Top 5 service elements that create perfect experiences

The rep already knows what I

need and provides me with an

immediate solution

49%

My routine needs are

answered proactively

40%

My issue is resolved

immediately

51%

The rep knows what I

already did in a self-service

channel

42%

My information / actions are

forwarded from department

to department

42%

Service importance varies by age –

one size doesn't fit all

Service

Important

Factor for

Churn

Total Gen Y/Millennials Gen X Baby Boomers

66% 54% 78% 66%

Top customer service-related reasons to stop doing business with a provider

45% Cannot reach a

successful resolution

45% Rude, unknowledgeable

or inexperienced

representatives

34% Excessive

wait times

32% Having to speak with

multiple reps and

repeat the information

Partners with

Thank you